The Australian dollar has rallied a bit during the trading session on Thursday as traders have come back from Christmas. At this point, the 0.6950 level being broken to the upside probably signifies that the trend has changed, and one thing that is on the sidelines and perhaps pushing this market higher is the fact that copper is starting to break out as well. At this point, the market is well above the 200 day EMA as well, and that in and of itself is a bullish sign.
AUD/USD Video 27.12.19
The 50 day EMA is starting to slope higher, and if we break above there and snap above the 200 day EMA, it would form the “golden cross” that so many longer-term traders like to hang on to. At this point, I like the idea of buying dips as it gives us the opportunity to pick up a bit of value. We have clearly made a long series of “higher lows”, and therefore I think at this point the market is in the process of changing the longer-term trend. Ultimately, that could send the market towards the 100% Fibonacci retracement level, closer to the 0.71 handle. Breaking above there could send this market much higher, perhaps towards the 0.75 handle. Otherwise, if we were to break down below the 50 day EMA, then things could get a bit messier but right now it’s obviously very bullish. That being said, I believe that 2020 is going to be very good for the Aussie going forward, especially as the Chinese and Americans play nicely for once.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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